This paper deals with improving the voltage quality of sensitive loads from voltage sags using a dynamic voltage restorer. The higher active power requirement associated with voltage phase jump compensation has caused a substantial rise in size and cost of the dc link energy storage system of DVR. To improve sag compensation strategy, this mitigates the phase jump in the load voltage while improving the overall sag compensation time. An analytical study shows that the proposed method significantly increases the DVR sag support time (more than 50%) compared with the existing phase jump compensation methods. The presence of harmonics, voltage and frequency variations deteriorate the performance of the system. In this project the frequently occurring power quality problem- voltage variation is discussed. The voltage sag/dip is the most frequently occurring problem. There are many methods to overcome this problem. Among them the use of FACTS devices is an efficient one. The Fuzzy Logic Controller we can get accurate result for voltage mitigation and harmonic distortion. The proposed control strategies are simulated in MATLAB SIMULINK environment and the results are presented.